In-store experience quality and perceived credibility: a green retailer context

Organic and green food is a growing sector globally, including in emerging economies such as India and China. Developing the organic food retail sector in emerging markets requires extensive investment in the credibility of organics and organic retailers. The paper examines the role of Indian consumers’ perceptions of green retailers’ environmental activities, and three aspects of in-store experience quality, in influencing consumers' perceived credibility of one green retailer. Using a 30-item questionnaire, 356 usable responses were collected from Indian consumers who had purchased goods from one food retailer which positions itself as being green. The data were analysed using factor analysis and structural equation modelling. Results found that consumer perceptions of food retailers’ environmental activities had a statistically significant effect on service encounter quality, in-store communication quality and product encounter quality, and consumer perceptions of a green food retailer's credibility. Results also found the effects of service encounter quality, in-store communication quality and product encounter quality positively influenced consumers’ perceptions of the credibility of the green food retailer. In addition, the three aspects of in-store experience quality mediated the relationship between consumer perceptions of retailers’ environmental activities and perceived credibility of green food retailers. These findings highlight the need for the development of green retailers’ strategies that establish positive consumer perceptions for themselves. They also identify that green retailers need to deliver in-store experiences that are aligned with these perceptions, creating an integrated organisational brand, thus enhancing consumers’ perceived credibility of green food retailers. Such actions will be important in all markets, but especially in emerging economies where green, organic food retailing is still developing, and where many new consumers have less product category experience and thus are more reliant on their pre-purchase perceptions.